Indian hospital chain Shalby has acquired implant assets from US-based Consensus Orthopedics for a consideration of $11.45m in cash.
Shalby’s wholly-owned subsidiary Mars Medical Devices’ unit Shalby Advanced Technologies will acquire the assets to expand the hospital’s orthopedic business.
Hospitals, surgeons and wholesale distributors are the main customers for Consensus’ orthopedic implants and instruments, which are primarily sold in North America.
To date, Consensus carried out more than 160,000 joint replacements with no recalls, Shalby noted.
The purchased assets mainly consist of inventory, manufacturing plant and equipment. Inventory comprises knee systems, hip systems, mobile bearing knee systems and revision knee systems.
Meanwhile, the manufacturing plant and equipment include machining & finishing, inspection and cleaning, packaging & sterilisation. Also, about 40 employees from Consensus will join Shalby.
Shalby carries out hip and knee replacement surgeries in India and has a 15% market share in private hospitals that deliver joint replacement.
With the acquisition, the hospital chain will be able to obtain implants at a competitive price for its own use in India. It will also leverage its asset platform to boost implant sales in foreign markets, including the US.
Shalby expects the transaction to expand its business and revenues, with implant sales projected to comprise 15% of total revenues in the fiscal year 2023.
As part of the deal, Consensus former CEO and founder Daniel Hayes will serve as Shalby Advanced Technologies CEO. Hayes will re-engage with current customers, design a new sales pipeline and invest in select technologies and patented products.
In addition, the hospital chain has appointed Johnson & Johnson Medical Asia Pacific’s DePuy Synthes vice-president of Orthopedics, Sushobhan Dasgupta, as vice-chairman and global president of Shalby.
Dasgupta will run the hospital business and will work with Hayes to expand Shalby’s implant business in India and international markets.
Shalby chairman Vikram Shah said: “This acquisition is a strategic milestone in the history of Shalby and will enable us to diversify our core hospital healthcare services business into related and high growth implant product offerings.
“The synergies between the businesses are compelling and will return immediate benefits of sourcing quality implants into India across our hospital group. This corporate development is fully in line with our stated strategy to grow our orthopedic business.”
The hospital chain has 11 multi-specialty tertiary hospitals in India and a total bed capacity of approximately 2,000.